The OECD is consulting on proposed changes to its commentary on the definition of ‘permanent establishment’ in Article 5 of its Model Tax Convention. The OECD’s proposals set out an alternative provision which would be added to its commentary on Article 5, specifically covering activities connected with the extraction of oil, gas and minerals.
The key proposal is to introduce a lower permanent establishment threshold, reached after a non-resident company has operated in a country for more than 30 days. The consultation seeks views on that proposal, on whether it could present challenges for profit attribution to short-term PEs and whether it should be extended to cover renewables.
The OECD is consulting on proposed changes to its commentary on the definition of ‘permanent establishment’ in Article 5 of its Model Tax Convention. The OECD’s proposals set out an alternative provision which would be added to its commentary on Article 5, specifically covering activities connected with the extraction of oil, gas and minerals.
The key proposal is to introduce a lower permanent establishment threshold, reached after a non-resident company has operated in a country for more than 30 days. The consultation seeks views on that proposal, on whether it could present challenges for profit attribution to short-term PEs and whether it should be extended to cover renewables.
